REMITTANCES, INSTITUTIONS AND FINANCIAL INCLUSION: NEW EVIDENCE OF NON-LINEARITY


Issabayev M., Saydaliyev H., Avsar V., Chin L.

GLOBAL ECONOMY JOURNAL, cilt.20, 2020 (ESCI İndekslerine Giren Dergi) identifier identifier

Özet

This paper investigates the effect of remittance inflows on financial inclusion. Using data from high remittance-receiving developing countries and applying dynamic panel data methods, we find that remittance inflow has a negative impact on financial inclusion for countries with low level of remittances. However, this relationship is positive for countries with high level of remittances. Our study found that there exists a nonlinear relationship between remittances and financial inclusion. We also show that the effect of remittances on the financial inclusion is conditional upon people's perception about institutions.